When posts are ads, the influencer should clearly state this in their caption. When an influencer uses Instagram to post an advert, they need to say that on the post clearly. Brands that want to promote their products or services using influencers must clearly state that they value transparency.
Influencers are required to disclose their advertisements because the Federal Trade Commission (FTC) requires it. Advertisers are often required to inform audiences that they are watching advertisements because this reminds the viewers that what they are seeing is unlikely to be authentic.
Whether you are a brand or agency running a campaign to market influencers on Instagram or an influencer yourself, both parties need to get on the same page on how sponsored Instagram posts should be disclosed. While influencer-led marketing is one of the best ways to reach your target audiences on Instagram, it is essential that influencers and businesses disclose these types of partnerships and sponsored Instagram posts. Influencers marketing products on social media should be transparent about sponsored posts and ads.
Influencers Must Follow the FTC Guidelines
While it is simple, brands and marketers must ensure that influencers follow the FTCs guidelines and rules and those of the individual platforms on which they appear. If you are an influencer, or if your brand works with influencers in the social media space, it is essential to know what you are required to do by the appropriate rules and for both parties to play a role in making sure that you are complying.
If you are an influencer, it is essential that you understand your obligations under a code of ethics and that you maintain a healthy working relationship with your partners. The Code is more focused on brands, not influencers, so if you are an influencer, it is essential for you and your attorney to go over any agreements or agreements that you have with brands to make sure that your posts comply with the Code.
The importance of understanding the guidelines for influencers is obvious, but brands, and even some influencers, are often unsure about what they should disclose, when, or how.
As a result, online influencers and brands need to understand the standards they hold. With impact in mind, marketers need to know about regulations and practice proper due diligence when dealing with brand influencer campaigns. As the brand, you are responsible for ensuring that you are FTC compliant – but it is not like influencers are not accountable, either.
When Influencers Sponsor Products
Sometimes, influencers are obligated to post about the said product; sometimes, they are not. Influencers should disclose when endorsing a product due to paid partnerships or a personal connection with a brand. An influencer must disclose their material affiliations explicitly and prominently on every product (service, brand, or business) endorsement post, as readers might not see any other places where this disclosure is included.
The disclosure should communicate clearly to viewers that the influencer has a material connection to the product (service, brand, or company) endorsed in the post.
The ultimate guideline of influencer marketing states that an influencer should disclose on brand posts when a material connection exists between them and an advertiser; failing to do so, the two parties should be held liable. Final guidelines for influencer marketing say influencers must label branded posts if there is a material connection between them and the advertisers, failing which both parties shall be held accountable.
The guidelines go into more details, like who is defined as an influencer, what constitutes material linkage between the influencer and an advertiser, which words may be used to label posts as sponsored, etc. Influencers are also advised to review and ensure they are in a position where [they are] in a place to back up claims made in an advertisement.
Suppose you have hired someone directly to promote your product by personally endorsing it, getting them a product or service for free in exchange for a review, or offering them affiliate sales. In that case, you need to follow the legal guidelines for influencer marketing. If you are an influencer looking to share a post about a recent partnership with a brand or are promoting products through a brand ambassador deal, here are the processes you will need to follow to ensure your post is not removed.
Tips for Disclosing Sponsored Posts
The first rule for correctly disclosing a sponsored post is ensuring that your disclosure is immediately apparent to anyone engaging with your content. Influencers should also be completely aware of their obligations regarding the disclosure of paid posts, although this might sound cheesy. Yet, a recent study found that an astounding 93% of sponsored content posted by A-list influencers on Instagram did not correctly disclose a paid relationship with a brand.
Concerned about business interests driving interactions between peers, the Federal Trade Commission has, since 2017, called upon companies and influencers, through its Advocacy Guide, to disclose the branding relationships, display a #ad, or mention paid partnership tag in prominent places.
The FTC sent letters in 2019 to 21 Instagram influencers, including Lindsay Lohan and Naomi Campbell, warning that posting sponsored Instagram posts to their accounts without a clear, prominent ad hoc disclosure violated the rules. The first-ever FTC complaint about social media influencers came in 2017 when it charged two popular YouTubers for failing to disclose they owned the online gambling services they were endorsing.
Social media personalities and influencers who make money by endorsing products and services through their social media platforms are sending a powerful message: They need to be clear about when they are being paid for their posts if they are not to be penalized under increased scrutiny by the Competition and Markets Authority (CMA).
Influencer marketing continues to grow in popularity as a successful strategy for consumer brands to reach their target audiences, and now Britain’s competition watchdog is ramping up its campaign to clamp down on the mislabeling of paid for social media endorsements. The growth of influencer marketing on social media has consumers scrutinizing posts from celebrities that just so happen to include the brand’s name.
